Bitcoin Faces Liquidity Squeeze as Fed Ends QT and Treasury Locks Cash

TLDR: The Fed’s QT end alone may not trigger a crypto rebound without new liquidity from QE or Treasury drawdowns. Treasury’s cash balance climbed to $965B in October, draining liquidity from markets and hitting Bitcoin. Bank reserves fell to the low end of ample levels, showing tighter conditions in funding markets. Liquidity could improve by [...]

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